Wednesday, June 22, 2011

Namibia Central Bank Holds Interest Rate at 6.00%

The Bank of Namibia held its benchmark interest rate, the repurchase rate, at 6.00%. The Bank said: "It is the view of the EC [Executive Committee] that the observed growth momentum at the beginning of the year that created an impression that recovery was consolidating was not firmly entrenched,"... "The EC also observed that inflation has increased, but still remains in tolerable levels, especially the underlying inflation,"

The Namibian central bank also held its interest rate unchanged at its April meeting, after dropping the rate 75 basis points in December last year. Namibia reported annual inflation of 5.2% in May, up from 4.8% in April.